Arsen Harutyunyan is Founder & CEO at BallButton and PassFactory.
Frequently executives within organizations encounter dilemmas when it comes to striking a balance between customer support costs and their associated expenses. Moreover, technology sector companies often grapple with an additional predicament related to liquidity and cash limitations: finding the right equilibrium between spending on research and development and customer support. Both areas are of utmost importance for technology companies.
Based on my experience founding and growing two successful businesses, nothing pays off more than superior customer support. A few times during the growth of these companies, because of capital constraints, we faced a choice of whether to spend on customer support or marketing, R&D and hiring. The decision was always to prioritize customer support and it paid off. Here are a few pillars we use:
• Never compromise the quality of customer support. Focus on top-notch customer support over any other area of business development.
• Provide customers with extra benefits and perks in difficult times to build loyalty in the long term. For example, during the Covid-19 pandemic’s initial month of shutdown, we provided our software free of charge to existing customers.
• Be timely and prompt in responding to customers. Even when you don’t have an immediate answer/solution to a customer support request, make sure you contact the customer and let them know that you are working on the request. This sets expectations but also provides a level of transparency, which customers appreciate.
• Ensure that support staff knows the product and customers’ needs. Customers can sense when the staff doesn’t know the product on a pro level.
There are, of course, other examples of a customer-centric business model. One of the most famous is Amazon. A few of the pillars of Amazon’s customer-centric culture are:
• From the palm of your hand, you can access fast, hassle-free ordering and delivery.
• Shopping is oversimplified with auto-fill, easy checkout and one-click order placement.
• You can opt into Amazon Prime, a fee-based membership program and receive fast one- or two-day shipping.
• There’s a 24/7 helpline, where you can always reach out to a real person.
• They offer easy returns and the customer is protected after the purchase has been made.
One of the primary reasons why top-notch customer service is paramount is its role in building trust and loyalty. Customers are more likely to remain loyal to a brand that consistently exceeds their expectations and provides a delightful experience. A satisfied customer is also more likely to spread positive word-of-mouth, attracting new customers and boosting the company’s reputation.
Acquiring new customers is vital, but retaining existing ones is equally important. Providing exceptional customer service plays a crucial role in customer retention. When customers feel valued and their needs are consistently met, they are less likely to switch to a competitor. Repeat business from loyal customers also contributes to the company’s bottom line.
In conclusion, in my experience, top-notch customer service is the foundation upon which trust, loyalty and brand reputation are built. Companies that prioritize exceptional customer service can gain a significant competitive advantage, driving customer retention, repeat business and positive publicity. On the other hand, compromising on customer service can lead to lost opportunities, damaged reputation and reduced customer satisfaction. Therefore, I believe top-notch customer support is paramount for business success.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
